Rockhopper Exploration Plc · LSE:RKH
Rockhopper Exploration — Oil Capital Presentation (September 2017)
18 slides from Rockhopper Exploration's conference presentation, Sep 5, 2017
Slide 1: Oil Capital Presentation
Oil Capital Presentation Building a well-funded, full-cycle, exploration- led E&P company 5 September 2017
Slide 2: Important Notice
Important Notice This Presentation does not constitute an offer or invitation or a solicitation of any offer or invitation for the sale or purchase of any securities in the Company. In addition, it is not intended to form the basis of or act as an inducement to enter into any contract or investment
Slide 3: Strategy for value creation through the cycle
Strategy for value creation through the cycle Building a balanced portfolio in core areas o Focus on North Falkland Basin and Greater Mediterranean o Across the full asset life cycle o Production base to cover costs and enable growth through exploration Maintaining balance sheet strength o Prudent b
Slide 4: Recent corporate highlights
Recent corporate highlights Strategic 2016 DAILY ECONOMIC o Consolidated leading North Falkland Basin acreage position through the all-share PRODUCTION (BOEPD) o merger with Falkland Oil & Gas Limited Acquired non-operated assets in Egypt from Beach Energy, increasing 2016 economic 1,350 production
Slide 5: North Falkland Basin
North Falkland Basin 5
Slide 6: A strategic acreage position in a world class hydrocarbon basin
A strategic acreage position in a world class hydrocarbon basin o Leading acreage holder in the North Falkland Basin o Discovered oil resources of 517 mmbbls (2C) and 900 mmbbls (3C) o Sea Lion field fully appraised through extensive E&A campaign o Substantial upside through Isobel-Elaine discovery
Slide 7: Sea Lion – material resource, fully appraised
Sea Lion – material resource, fully appraised o Medium water depth (350 - 450 metres) o Sea Lion discovery well drilled in 2010 o Sea Lion appraisal and discovery of satellite fields in 2010 / 11 through extensive exploration / appraisal campaign o 4,500 km2 3D seismic covering entire licence area o
Slide 8: Sea Lion – increasing resource base as project matures
Sea Lion – increasing resource base as project matures e % i n creas 35 se 5% i ncrea 11 Independently certified 2C resources have more than doubled since discovery as field appraised and better understood 8
Slide 9: Sea Lion in the global context
Sea Lion in the global context Sits within the top 5 largest offshore oil discoveries made this decade* * Source Wood Mac, company disclosures. Jan 2010 – Dec 2016. Excluding ultra deep water. Logo represents operator at time of discovery 9
Slide 10: Material low-risk upside remaining within the basin
Material low-risk upside remaining within the basin Capture 3C resource Low risk exploration upside Further exploration and within Sea Lion located close to Sea Lion appraisal of Isobel-Elaine 10
Slide 11: Sea Lion development planning – Phase 1 (Rockhopper 40%)
Sea Lion development planning – Phase 1 (Rockhopper 40%) Phased development approach adopted o Phase 1 to develop 220 million barrels in the north of the field via leased FPSO o Initial target production 80,000 bopd gross (32,000 bopd net) FEED process for Phase 1 substantially Source: Premier Oil c
Slide 12: Growing our asset base in Greater Mediterranean
Growing our asset base in Greater Mediterranean …Delivering a step-change increase in production and revenue Notes: • Economic production includes production from the effective date (being 1 January 2016) of the acquisition of assets in Egypt • Revenue includes impact of Egypt acquisition from mid A
Slide 13: Abu Sennan – Western Desert, Egypt (Rockhopper 22%)
Abu Sennan – Western Desert, Egypt (Rockhopper 22%) o Operated by Kuwait Energy o Six fields currently producing 725 boepd net (~90% oil) o Active drilling programme with historic success rate of ~75% o Quality crude with small discount to Brent o Low cash operating costs ~$10/bbl (2016) o Explorati
Slide 14: Italian portfolio - production with exploration upside
Italian portfolio - production with exploration upside Guendalina (RKH 20%) Monte Grosso (RKH 23%) o Operated by Eni o Operatorship recently transferred to Eni o 2016 net production: 410 boepd o Largest undrilled prospect onshore Western Europe o Attractive gas price (~$5.5/mcf) o ~250 mmbbl prospec
Slide 15: Protecting financial strength to enable growth
Protecting financial strength to enable growth o Strong balance sheet with cash at June 2017: $63 million; no debt o Limited outstanding work program commitments o Continued focus on cost management • Corporate costs largely funded by Greater Mediterranean production • Recurring G&A reduced by 30% o
Slide 16: Focus on cost management
Focus on cost management Continued focus on reducing corporate costs Recurring* net G&A (US$m) o Net recurring G&A in 2016: US$7.4 million o Equivalent to approximately US$600k per month 12 o Approximate 30% reduction over the last 2 years (30%) 10 Savings achieved through 8 o UK employees (15 in to
Slide 17: Solid platform for sustainable growth
Solid platform for sustainable growth FINANCIAL HEALTH AND FLEXIBILITY OPPORTUNITY FOR • Strong cash balance MATERIAL VALUE and generation CREATION • Disciplined focus on TRACK RECORD OF • World class discovery efficiency STEADY GROWTH with robust economics • Sea Lion funding • Short-cycle productio
Slide 18: Proud to be Rockhopper
Proud to be Rockhopper KS ROCKHOPPER EXPLORATION PLC
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